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Yield Farming is an initiative used by protocols in DeFi to incentivize liquidity and utilization by rewarding users in governance tokens (such as $BSWT).
The idea behind this is to attract users by giving them ownership of BaySwap protocol (Yes, BaySwap is a fully community-driven protocol)
In BaySwap, Yield Farming translates to distributing $BSWT token rewards to users who Provide Liquidity on BaySwap DEX and stake their Liquidity Provider Tokens (LP Tokens or LPTs). Staking LPTs will earn you $BSWT rewards in proportion to how much the share of LPTs you are staking is compared to the total LPTs staked in the particular farm. BaySwap will aim to have an effective system for farming yield while also offering the best user experience.
Bootstrapping Period happens in the first Quater (4 months) period of Mainnet deployment. During this period, BSWT follows a predictable and aggressive schedule to acquire users and TVL
1st month: 1.5% total supply = 15.000.000 BSWT ≈ 500.000 $BSWT/day
2nd month: 1.4% total supply = 14.000.000 BSTW ≈ 466.666 $BSWT/day
3rd month: 1.3% total supply = 13.000.000 BSTW ≈ 433.333 $BSWT/day
4th month: 1.2% total supply = 12.000.000 BSTW ≈ 400.000 $BSWT/day
(In beyond calculation, we assume that 1 month = 30 days)
In summary, BaySwap ensures that early supporters of BaySwap are maximally rewarded. A total 5.4% total supply was allocated during Bootstreapping Period
Voting Period happens immediately after Bootstrapping Period ended which means the beginning of Quater 2 after Mainnet deployment.
During Voting period, users who are holding $BSWT enter the completely on-chain voting event to decide what is the amount of $BSWT to be rewarded for the next 4-months Period. It is to ensure that BaySwap community 100% fully takes part in important events.
To avoid the too large different amounts of $BSWT between consecutive 4-months Period, the increasing or decreasing of minted $BSWT should not be greater than 50% compared to the last period. For example, if Voting Period 1 reward is 400.000 $BSWT/day, then Voting Period 2 reward should be not less than 200.000 $BSWT/day or not greater than 600.000 $BSWT/day. None of those scenarios must or have to occur, but they are the bounds of Voting period phase.